O'Connor & Associates
Encyclopedia
O'Connor & Associates was a Chicago
-based options trading firm, with particular emphasis on financial derivatives. The firm was acquired by Swiss Bank Corporation
(later merged with Union Bank of Switzerland
to form UBS.
O'Connor was headquartered in Chicago, United States, and occupied the former offices of the Chicago Board of Trade
. At the time of its acquisition by Swiss Bank Corporation
, O'Connor had over 600 employees worldwide, 230 of which were based in Chicago. The remaining 400 employees were involved with O'Connor's Swiss Bank joint venture, which was formed in 1989.'.
and founded First Options, a clearing house
. The O'Connors provided Greenbaum, who had run risk management for First Options, with the capital to start his own firm.
SBC had established a strategic relationship with O'Connor, which was the largest market maker
in the financial options exchanges in the U.S., beginning in 1988. O'Connor had been looking to partner with a larger financial institution. O'Connor entered into a currency joint venture with SBC, in 1989, that proved to be the first step towards a sale of O'Connor to SBC.
Following the merger, O'Connor was combined with SBC's money market
, capital market
, and currency market activities to form a globally integrated capital markets and treasury operation.
A number of O'Connor executives were brought into key positions within Swiss Bank.
Chicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...
-based options trading firm, with particular emphasis on financial derivatives. The firm was acquired by Swiss Bank Corporation
Swiss Bank Corporation
Swiss Bank Corporation was a large integrated financial services company located in Switzerland...
(later merged with Union Bank of Switzerland
Union Bank of Switzerland
Union Bank of Switzerland was a large integrated financial services company located in Switzerland. The bank, which at the time was the second largest bank in Switzerland, merged with Swiss Bank Corporation in 1998, to become UBS to form what was then the largest bank in Europe and the second...
to form UBS.
O'Connor was headquartered in Chicago, United States, and occupied the former offices of the Chicago Board of Trade
Chicago Board of Trade
The Chicago Board of Trade , established in 1848, is the world's oldest futures and options exchange. More than 50 different options and futures contracts are traded by over 3,600 CBOT members through open outcry and eTrading. Volumes at the exchange in 2003 were a record breaking 454 million...
. At the time of its acquisition by Swiss Bank Corporation
Swiss Bank Corporation
Swiss Bank Corporation was a large integrated financial services company located in Switzerland...
, O'Connor had over 600 employees worldwide, 230 of which were based in Chicago. The remaining 400 employees were involved with O'Connor's Swiss Bank joint venture, which was formed in 1989.'.
History
O'Connor was founded in 1977 by mathematician Michael Greenbaum and was named for Edmund (Ed) and Williams (Bill) O'Connor. The O'Connor brothers had made a fortune trading grain on the Chicago Board of TradeChicago Board of Trade
The Chicago Board of Trade , established in 1848, is the world's oldest futures and options exchange. More than 50 different options and futures contracts are traded by over 3,600 CBOT members through open outcry and eTrading. Volumes at the exchange in 2003 were a record breaking 454 million...
and founded First Options, a clearing house
Clearing house (finance)
A clearing house is a financial institution that provides clearing and settlement services for financial and commodities derivatives and securities transactions...
. The O'Connors provided Greenbaum, who had run risk management for First Options, with the capital to start his own firm.
SBC had established a strategic relationship with O'Connor, which was the largest market maker
Market maker
A market maker is a company, or an individual, that quotes both a buy and a sell price in a financial instrument or commodity held in inventory, hoping to make a profit on the bid-offer spread, or turn. From a market microstructure theory standpoint, market makers are net sellers of an option to be...
in the financial options exchanges in the U.S., beginning in 1988. O'Connor had been looking to partner with a larger financial institution. O'Connor entered into a currency joint venture with SBC, in 1989, that proved to be the first step towards a sale of O'Connor to SBC.
Following the merger, O'Connor was combined with SBC's money market
Money market
The money market is a component of the financial markets for assets involved in short-term borrowing and lending with original maturities of one year or shorter time frames. Trading in the money markets involves Treasury bills, commercial paper, bankers' acceptances, certificates of deposit,...
, capital market
Capital market
A capital market is a market for securities , where business enterprises and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year, as the raising of short-term funds takes place on other markets...
, and currency market activities to form a globally integrated capital markets and treasury operation.
A number of O'Connor executives were brought into key positions within Swiss Bank.